D2C beauty brand SUGAR Cosmetics has raised ₹144.47 crore in a fresh equity funding round from venture capital firm A91 Partners at a sharply lower valuation, according to the startup’s Ministry of Corporate Affairs filings accessed by media reports.
The Mumbai-based company allotted 1.12 lakh Series D7 compulsorily convertible preference shares to A91 Emerging Fund III at ₹12,871 per share. The shares will convert into equity upon listing or one day before 20 years from the issue date.
The company’s board approved the transaction on September 1.
The latest funding round values SUGAR Cosmetics at a post-money valuation of ₹550–600 crore. This represents a 75–80% decline from the ₹2,600–2,700 crore valuation that the startup commanded during its November 2024 fundraise.
Meanwhile, SUGAR’s pre-money valuation for the latest round stood at ₹433.6 crore. The company’s valuation had previously peaked at around ₹3,000 crore in 2022.
The fresh funding comes as the beauty startup faces mounting financial challenges. SUGAR’s net loss nearly doubled to ₹135 crore in FY25 from ₹68.4 crore in the previous financial year.
At the same time, the company’s operating revenue declined by 20% to ₹404.4 crore in FY25 from ₹505.1 crore a year earlier.
Furthermore, SUGAR’s EBITDA losses more than doubled to ₹116 crore from ₹48.5 crore during the same period. The company has yet to report its FY26 financial results.
“The company has demonstrated a sustained and worsening pattern of financial deterioration over the past two financial years,” wrote registered valuer Sayali Deshkar in a June 30, 2026, valuation report attached to the filings.
Media reports have attributed the financial pressure to SUGAR’s aggressive offline expansion strategy. A report stated that the company shut down 30–40% of its newly opened physical stores after the outlets reported per-store losses.
Founded in 2015 by Vineeta Singh and Kaushik Mukherjee, SUGAR Cosmetics sells beauty and personal care products through its website, physical stores, and e-commerce platforms.
The company has raised approximately $90 million to date from investors, including Elevation Capital, A91 Partners, Anicut Capital, and IndiaQuotient.
SUGAR currently operates four brands—SUGAR, POP, ENN, and Quench Botanics—and competes with companies such as Nykaa, Mamaearth, and Renee Cosmetics.
The latest funding round comes as India’s D2C sector enters what industry observers describe as a “3.0” phase. Beauty and personal care have emerged as key growth categories, attracting more than $1.1 billion across 201 deals between 2015 and Q1 FY26.
